Kruso Kapital (KK) H1 2024 earnings summary

Executive summary

• Achieved consolidated net profit of €1.9 million for H1 2024, doubling year-over-year, with total income up 28% to €11.5 million compared to H1 2023, despite a higher tax burden and sequential growth from 1Q24 to 2Q24.

• Significant events included IPO on Euronext Growth Milan, capital increase, and acquisition of a collateralised loan portfolio in Naples, with board approval of consolidated financial statements as of June 30, 2024.

• Subsidiaries ProntoPegno Greece and Art-Rite remain in startup phase, with Art-Rite operating in a volatile sector and both posting losses; neither is expected to contribute positively in 2024.

• Adjusted net profit, excluding non-recurring IPO and acquisition costs, exceeded €2 million.

Financial highlights

• Net interest income/margin rose 36% year-over-year to €4.7 million, driven by higher lending volumes and margins.

• Net fee and commission income increased 24% to €6.8 million, supported by higher loan volumes and more auctions.

• Operating costs increased 11% to €8.2 million, mainly due to higher personnel expenses and non-recurring IPO/acquisition costs.

• Total assets grew 2.9% from December 2023 to €172.6 million.

• Adjusted net profit, excluding non-recurring items, was €2.1 million.

Outlook and guidance

• Interest margin growth expected to offset higher funding costs, especially in Italy, with funding costs stabilizing in Q2 2024 after prior ECB rate hikes.

• Subsidiaries in Greece and Art-Rite are not expected to contribute positively to profit in 2024.

• Acquisition in Portugal expected to close in H2 2024, pending regulatory process.